I currently have my first property under contract with a conventional loan with my bank. I do not plan on living there for more than a year. I will be making it a rental but I would like to have some room mates to help pay the mortgage while I live there.
My questions are if i do find roommates, do I do a lease agreement like a regular rental? Am I allowed to rent my rooms legally immediately after purchasing the property?
Hey @Chris Hodge big congrats to you! If you are in a conventional loan situation there should be no issue in renting things out by the room. I would absolutely recommend doing a lease agreement for each roommate...just to keep things easy and in writing. You are 100% legally aloud to rent your rooms as soon as you'd like after purchasing, the only thing that would prevent you from doing this is if there is some local codes that prohibit a certain concentration of people living in a home. But something tells me that even if you rent 1person:1 bedroom you'll be fine.
Congrats and good luck!
@Michael K Gallagher thank you so much for your advice. I really appreciate the help! I’m super excited!
Hey Chris, congrats! I also just posted about something similar today as I will be doing rent by room for my first investment property. One thing I did get advice from my realtor is possibly furnishing the living room at least if you do rent by room to easily attract those who are just looking for a room. I'm looking into the lease agreement to see the difference if any, on how to structure that.
Where is your property at?
Oh nice yeah I would have to do some cosmetic updating (paint and flooring) before furnishing but my property is in Reading, PA